S&P upgrades Constellium

S&P said it raised the long-term issuer credit rating on Constellium to B from B-, along with the issue rating to B from B- on its senior unsecured debt.

The upgrade reflects Constellium's improved credit metrics in 2018, the agency said, and expectations for a further step up in 2019 and 2020.

Constellium continues to enjoy strong demand for its products with record profits forecast for 2019, S&P said.

The company is ramping up its major projects, which should further enhance its product portfolio, the agency said, as well as its profitability over the medium term.

The stable outlook reflects an expectation that higher profitability will enable Constellium to continue to reduce leverage, with free operating cash flow turning positive and reducing the company's absolute debt level in the longer term, S&P said.

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